Finance and public-works staff presented the city’s annual development-impact-fee reports and traffic-impact-fee analysis, required under state law. Staff described five special-revenue fee funds — park development, drainage, traffic impact fees (TIF), fire system development fees and cannabis fees — and reported positive ending balances for fiscal year ending June 30, 2025.

Transportation staff said an ad-hoc committee recommended a recalculated traffic-impact fee of $231 per average-daily-trip (ADT) based on eligible projects and active-transportation investments; the committee also recommended continuing allocations for traffic-signal coordination and reductions to reflect active-transportation improvements.

Council members asked about year-to-year revenue variability tied to development, the decline in park-fee revenue since 2020, and whether SB 358 (enacted by the state) would require more granular fee reductions for qualifying housing developments. City attorney and staff said the city can set a base fee and then provide statutory reductions for qualifying projects; staff committed to operationalizing the statute when setting fees and to returning with adjustments as needed.